Yes Bank has received board approval to raise up to ₹16,000 crore in capital during the financial year 2025–26. The private sector lender will mobilize ₹7,500 crore through equity issuance and an additional ₹8,500 crore via debt instruments, according to a regulatory filing issued on Tuesday evening.
The fundraising will be carried out in multiple tranches across both domestic and international markets. The equity portion will be raised using a range of approved financial instruments, with the bank clarifying that overall equity dilution will be capped at 10%.
To bolster its strategic partnership with Japan’s Sumitomo Mitsui Banking Corporation (SMBC), the bank will also revise its Articles of Association. This amendment is aimed at facilitating SMBC’s proposed equity infusion and increasing its shareholding in Yes Bank.
On May 9, SMBC signed a definitive agreement to acquire a 20% stake in Yes Bank for ₹13,483 crore via a secondary market transaction. As part of the agreement, SMBC will gain pro-rata pre-emptive rights to participate in future equity issuances to maintain its stake. The Japanese banking giant will also be entitled to nominate two non-executive, non-independent directors to Yes Bank’s board. Meanwhile, State Bank of India (SBI), one of the bank’s largest shareholders, will continue to have the right to nominate one board member.
Yes Bank last raised ₹15,000 crore in July 2020 through a follow-on public offer. In March 2022, it secured ₹8,887 crore from private equity players Carlyle and Advent International through a preferential share issue, each acquiring a 9.99% stake.
As of March 2025, Yes Bank reported a Common Equity Tier 1 (CET1) ratio of 13.5% and a total capital adequacy ratio of 15.6%, indicating a stable capital position ahead of the new fundraising.